It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Thursday, August 01, 2024
Panama Canal Continues Progress Toward Normal Operations
Panama Canal continues to raise the number of daily transits (file photo)
After experiencing one of the worst droughts in its history, Panama highlights it is continuing to move in the right direction restoring capacity at the Panama Canal. The Panama Canal Authority reports it will add back further slots for daily transits in the coming weeks bringing it close to previous levels and a nearly full operating depth.
At the end of July, the Panama Canal Authority increased the total number of transits to 34 per day. Speaking this week with Reuters, Deputy Administrator Ilya Espino highlighted that they will add one additional slot next week, bringing as of August 5 the total to 35 daily transits. Then in September, another slot will be added to bring the total to 36.
The Panama Canal Authority has previously said its target was to return to 36 to 39 daily transits between the newer Neopanamax and original Panamax locks. At the peak of the water crisis, the Panama Canal Authority had lowered the transits to a total of 22. They had mapped a further step to 18 daily transits but were never required to implement those restrictions.
Espino highlighted that normally the Authority is only restricting vessel draft during the summer months. They are still holding a cap on the number of transits as well but expect due to efforts and the early return of the rainy season the situation will continue to ease.
Currently, the draft is set at 46 feet which permits most of the large vessels to proceed as normal at the Canal. Earlier this year, with the draft restricted LNG carriers were diverting, and large containerships were only able to carry partial loads. Some were transshipping boxes across the Isthmus by rail. Maersk for a time was substituting a double-ship deployment with boxes transferred from ship to ship using the rail links to avoid having to make the transit.
Water levels in Gatun Lake, which is the reservoir for the Canal, and also supplies drinking water to the population, have been rising with the onset of the rainy season, which typically continues for several more months. Today, the water level in the Gatun Reservoir is at 84 feet and the Authority is expecting based on weather forecasts that it will rise at least two more feet by October. It peaked at 88 feet in December 2022 but had fallen to 79 feet as of June 2023.
The Panama Canal Authority implemented various water-saving steps including recycling water and double locking where two smaller vessels made the transit in tandem. That helped along with the restrictions on the number of transits and vessel draft to maintain the water level at 79 to 80 feet. However, it also meant that there were longer waits and a pile-up in the number of vessels queuing for the transit.
While the Canal is nearly back to normal on the number of daily transits, the draft is still down currently four feet from the peak. At the beginning of 2023, the Panama Canal was accommodating vessels with a 50-foot draft.
Longer-term, the Authority has mapped out a plan to create a second reservoir to help it manage the impact of climate change. The development of railroads, including efforts in Mexico, is also being presented as an alternative route for cargo.
LAW OF THE SEA
Two Divers Survive 38 Hours Adrift in the Gulf of Mexico
Nathan and Kim Maker are barely visible in this infrared image from a Coast Guard search aircraft (USCG)
When recreational divers Nathan and Kim Maker went on a trip off the coast of Texas last Wednesday, they thought that it would be a brief day outing. It turned into a multiday ordeal, afloat in the Gulf without a boat, and they survived through persistence - on their part, but also by the U.S. Coast Guard.
On the morning of the 24th, the Makers were on a dive trip off Matagorda, and they were returning to the boat after finishing a dive. Another diver in the group lost her hold on the downline, the cord that divers follow from the boat to the destination below. Surface conditions were rough and the current was strong, and began to sweep the woman away. Nathan Maker broke away and swam after her and succeeded in getting her back to the line. However, he did not manage to grab hold himself, and Kim Maker got separated as well. The current quickly swept them away from the group and the dive boat.
"The boat was getting smaller and smaller and smaller until it was completely out of sight," Nathan Maker told Good Morning America.
The crew of the dive boat began a search for the couple, and then made a call to the Coast Guard to report them missing.
The Makers tried to swim to a rig, but it was too far off to reach. They drifted for the rest of Wednesday and all of Thursday, and the odds of survival were slimming. But at about 0100 hours on Friday morning, a Coast Guard search plane came close. Kim Maker signaled the aircraft by flashing "SOS" in Morse code with her flashlight, and the aircrew vectored in a search and rescue boat.
After 38 hours adrift in the Gulf, without food or fresh water, the couple were in need of assistance. Nathan Maker had nearly entered a diabetic coma, and Kim had an infection. But after they were provided with medical care and released, they knew exactly where they were headed: Kenny & Ziggy’s Delicatessen in Houston, where the owner treated them to a mile-high sandwich of pastrami and rye, cheesecake, and matzoh ball soup. (He refused payment.)
Harland & Wolff Secure Lifeline from U.S. Lender as Reorganization Begins
Harland & Wolff expanding its existing financing as it explores reorganization (file photo)
The famed shipbuilding group Harland & Wolff announced it has entered into an arrangement with its existing lending to provide funding commitments to support the group’s “ongoing stabilization and long-term strategy objectives.” The shipbuilder of famous vessels including the RMS Titanic, was plunged into a financial crisis when the new British government decided not to proceed with a £200 million ($258 million) export development loan guarantee that would have provided for the refinancing of the company.
Riverstone, a U.S.-based private equity asset manager, agreed to provide the company a further $25 million bringing Harlnd & Wolff’s total commitments to $140 million. Terms of the expansion were not announced but the line was scheduled to come due at the end of 2024. Harland & Wolff had reported it was working with a syndicate of commercial banks to refinance the company at lower interest rates supported by the UK government loan guaranty.
The new facility is expected to give the troubled shipbuilder a temporary reprieve as it tries to craft a long-term strategy. Two weeks ago, after the government said it was not proceeding with the loan guaranty, the company reported its CEO John Wood was taking a leave of absence and that it was bringing in a new CEO who was a reorganization specialist. It also engaged Rothschild & Co. as its financial adviser to assess strategic options for the group, which are believed to include a possible sale.
Harland & Wolff announced today it has terminated the employment of John Wood effective July 31 and he has left the company’s board. Wood led the midstream natural gas company InfraStrata that purchased the Belfast yard from administration in 2019 and engineered the strategy to revitalize the group.
Recently, the group highlighted that its four shipyards were all functional for the first time and it was growing its orderbook, including cruise ship refurbishments. In its unaudited 2023 financial statements, the group reported £87 million ($112 million) in revenues while its operating loss narrowed to £24.7 million ($31.5 million) from £58.5 million ($74.8 million) in 2022. They were projecting £200 million ($255 million) in revenues for FY 2024.
Trading in the group’s stock also remains suspended after it failed to publish audited year-end results. The group said it was due to discussions with auditors over revenue recognition and that the audit would be completed by mid-July.
The group planned to start a ferry service to the Isles of Scilly (Scilly Ferries/X)
Interim CEO Russell Downs working with the board has begun the reorganization of the company. Today, they announced they have immediately terminated a planned ferry operation between Penzance and the Isle of Scilly. At the beginning of 2024, the company announced plans for Scilly Ferries after losing a bid to design and build vessels for the existing ferry company. It chartered a 400-passenger high-speed catamaran named Atlantic Wolff. The vessel recently arrived in Penzance for testing painted in Harland & Wolff’s yellow and black colors. They report the vessel will now be returned to Damen.
“It is regrettable that we have taken the tough decision to terminate the fast ferry, but we need to focus our energies and resources in continuing to grow the core business across our four delivery centers,” said Malcolm Groat, Chairman of Harland & Wolff. He added that the decision aligns with and brings the company back to its fundamental five markets and six services strategy.
Harland & Wolff in 2022 was part of a consortium led by Navantia that won a lucrative UK contract for three Royal Navy support ships. The group has been investing in upgrading its facilities with work expected to begin in 2025 on the project. In 2023, the shipyard in Belfast completed its first new construction, a Thames River barge, in 20 years.
DEFINE PROFITEERING
Maersk ups profit target by $2bn on Red Sea shipping woes
Copenhagen (AFP) – Danish shipping giant Maersk said Thursday it expects its underlying profit in 2024 to be $2 billion higher than its previous forecast as freight rates have increased amid the crisis in the Red Sea.
Issued on: 01/08/2024 -
Robust demand for container shipping and the crisis in the Red Sea have lifted freight rates
Months of attacks by Yemen's Iran-backed Huthis have prompted some shipping companies to detour around southern Africa to avoid the Red Sea route -- which normally carries about 12 percent of global trade.
Maersk said in a statement that it was upgrading it's 2024 full-year guidance "due to the continued supply chain disruption caused by the situation in the Red Sea, which is now expected to continue at least until the end of 2024, coupled with robust container market demand."
The Danish company said it was now expecting its operating profit (earnings before interest, taxes, depreciation, and amortisation or EBITDA) to come in at between $9 and $11 billion for the full year.
Already in June, the shipping giant had upped its projected EBITDA by $3 billion to between $7 and $9 billion.
"Trading conditions remain subject to higher than normal volatility given the unpredictability of the Red Sea situation and the lack of clarity of supply and demand," it added.
Maersk, which is due to report its second quarter earnings on August 7, said that based on preliminary figured it would report a revenue $12.8 billon, and EBITDA of $2.1 billion for the second quarter.
The Yemeni rebels have been launching drones and missiles at shipping in the Red Sea since last November, saying they are acting in solidarity with Palestinians during the Gaza war.
In July, a deadly Huthi drone strike on Tel Aviv prompted Israeli air strikes on Yemen's port of Hodeida, which killed nine people and triggered a massive inferno.
After starting 2024 on a cautionary note, A.P. Moller – Maersk raised its 2024 forecast for the third time this year citing the positive effect on freight rates from the disruptions in the Red Sea and elsewhere. Long seen as a bellwether as the largest public company in the sector, Maersk became the latest to cite strong rates that were more than offsetting cost increases while also saying that it expects these conditions to last till 2025.
“Due to the continued supply chain disruption caused by the situation in the Red Sea, which is now expected to continue at least until the end of 2024, coupled with robust container market demand, APMM upgrades its full-year 2024 guidance,” the company said in a pre-market statement. It came a week before the company is scheduled to report quarterly results.
Maersk increased its full-year forecast by $2 billion or better than 20 percent on its previous EBITDA forecast (now $7 to $9 billion). EDIT profit was projected to increase by at least two-thirds or as much as double (now $1 to $3 billion). The company said free cash flow from operations will also double to at least $2 billion this year.
These numbers represent a strong change from late in 2023 and early 2024 when the container sector was citing a collapse in rates warning that the industry was likely to move to financial losses. Maersk and its peers were all citing weak demand and falling rates and even after the Red Sea diversions began in 2024 said costs were skyrocketing due to increases for fuel and longer distances.
Maersk also reported unaudited preliminary figures for the second quarter. Revenues are reported up nearly four percent for the company versus the first quarter to $12.8 billion, while profitability is dramatically improved over the first quarter. Maersk said EBITDA will be at $2.1 billion which is up more than 30 percent versus the first quarter of 2024. The results, however, are still significantly behind 2023 when the company reported a profit of $2.9 billion (EBITDA) while revenues will be nearly flat versus last year’s $13 billion in Q2.
Maersk, however, warns investors, “Trading conditions remain subject to higher than normal volatility given the unpredictability of the Red Sea situation and the lack of clarity of supply and demand in Q4.”
While the situation in the Red Sea appears to be calmer – there has not been an attack in over a week – none of the major shipping companies expect to resume their normal routing in the near term. With tensions high in the Middle East, safety remains the primary concern. However, other threats are looming that could further disrupt the industry including the potential for a dockworkers strike on Canada’s West Coast in August and the U.S. East Coast in October.
Russian Navy Launches Drills off Every Coast, Except in the Black Sea
On Wednesday, the Russian Navy launched a massive series of drills in the Arctic Ocean, the Pacific, the Baltic Sea and the Caspian Sea, according to the Kremlin. The Black Sea Fleet - which has been hammered by Ukrainian attacks - was not included.
The Russian Ministry of Defense said that the service will mobilize 20,000 personnel and 300 vessels across the four regions. They will carry out more than 300 combat exercises, ranging from "passive interference" to air defense and anti-submarine warfare.
Ukraine has damaged, destroyed or sunk at least 15 Russian warships and auxiliaries, including the Black Sea Fleet flagship, the Moskva. Its unmanned bomb boats have proven to be an elusive and persistent threat, reaching Russian targets hundreds of nautical miles from Ukrainian-controlled shores. The last Russian patrol ship departed Sevastopol - the fleet's ancestral home - and headed for the relative safety of Novorossiysk in the northeast corner of the Black Sea. With Western-supplied long range missiles, Ukraine has struck multiple Russian vessels in the Kerch Strait, prompting the Russian Navy to temporarily withdraw from the Sea of Azov as well.
Overnight Monday, the Ukrainian Navy said that it struck a Russian weapons storage depot in the town of Kursk, about 60 miles from Ukrainian-controlled territory. A regional official confirmed a fire at an unnamed facility, and the Russian defense ministry said that it shot down a Ukrainian Neptune missile - the Ukrainian-built long range antiship missile that destroyed the cruiser Moskva in 2022. The Neptune is derived from the Soviet-era Kh-35 antiship missile, and Ukrainian engineers created a land-attack version last year.
Jones Act Investments Strong as JP Morgan Group is Latest in the Sector
Schuyler Line operates tankers and cargo ships with contracts to the U.S. Government (SLNC)
Investor interest in the protected U.S. Jones Act shipping market is growing as demonstrated by the news that a group advised by J.P Morgan Global Alternatives’ Global Transportation Group has taken control of Bold Ocean. The announcement of the transaction comes on the same day as Crowley and SEACOR launched their new joint venture Fairwater and just weeks after Saltchuk Resources finally completed its long-sought acquisition of Overseas Shipholding Group.
Demand continues to grow in the protected market both for commercial Jones Act-compliant shipping as well as contracts to support the U.S. government. Fairwater cited the evolving needs of the market with the increasing demands on sustainability. The energy segment is strong as well as new entrants linked to the emerging opportunities to support offshore wind energy.
J.P. Morgan continues to also show strong interest in the opportunities in the shipping sector. The investment company has interests ranging from tankers and gas carriers to the bulk sector with reports its interest include a fleet of approximately 150 ships.
Terms of the acquisition of Bold Ocean, which was purchased from private equity firm NOVA Infrastructure, were not disclosed. NOVA partnered with the founders and management team of Bold Ocean in 2020 with the goal of building the leading maritime transportation and logistics platform in the U.S. Flag. During NOVA’s partnership with Bold Ocean, the company significantly expanded its operating footprint and market scope and high-graded its leading fleet of vessels.
Headquartered in Annapolis, Maryland, Bold Ocean was launched in 2018 as a parent company for a range of holdings in the maritime sector and related businesses. Its focus is on Jones Act tonnage, the U.S. Cargo Preference market, and the Maritime Security Program. The group includes Schuyler Line Navigation Company as well as stevedoring, technical management, and crew operations.
Bold Ocean highlights that the group operates a total of nine vessels that transport essential government supplies, fuel, humanitarian food aid, and other goods under long-term time charter with the U.S. government as well as parcel contracts with highly rated counterparties, providing significant revenue stability and downside protection for the business.
Schuyler Line Navigation Company was founded in 1998 by three graduates of SUNY Maritime and today operates five ocean-going vessels including two tankers, two heavy lift vessels, and a general cargo ship as well as cargo barges. Services include various U.S. government-approved bulk/break bulk cargoes from the U.S. to Guantanamo Bay, Cuba. The line also has Pacific services, including to the Far East, as well as services to West Africa and a charter business.
Echandia Joins the Growing Green-Propulsion Industry in Washington State
Washington Gov. Jay Inslee (second from left) joins the ribbon-cutting for the new Echandia factory, July 31 (Echandia)
In a sign of the favorable investment climate in the U.S. shipbuilding supply chain, Swedish battery maker Echandia has decided to set up a manufacturing plant in Washington State, just 50 miles from Norwegian-owned competitor Corvus.
"The US market holds immense strategic importance for us, and this represents a pivotal step in our rapid expansion," said Fredrik Hellström, CEO of Echandia Marine AB, in an announcement Thursday. "We look forward to being part of the thriving Washington business community for many years to come."
Echandia predicts that the U.S. maritime electrification market will grow in the years ahead, and Washington is a promising location. The Washington State Ferry system - the largest in the United States - has a legislative mandate to transition its 21-vessel fleet to battery-hybrid operation by 2040, at an estimated cost of $4 billion. The invitation to bid for the first five hybrid vessels was released in May.
"Washington is leading the world’s high-tech revolution, putting people to work on solutions that will change the world for the better," said Washington Gov. Jay Inslee in an accompanying statement. "Echandia will continue that right here in Marysville, putting brilliant Washingtonians to work and accelerating the decarbonization of maritime transport."
Echandia is the second maritime-battery firm to start production in Washington. In 2022, Norwegian-owned battery system builder Corvus Energy announced the construction of a new factory at the Port of Bellingham, Washington, north of Marysville on the I-5 corridor. The new manufacturing plant officially opened in January 2023, and it has an annual output of 200 MWh of battery storage system capacity. Corvus has existing battery factories in Norway and British Columbia, but it wanted to expand production to meet growing U.S. demand.
Echandia and Corvus are part of a growing trend of foreign direct investment in the U.S. shipbuilding industrial base, all by firms from allied nations. In addition to longstanding foreign investors like Fincantieri, newcomers from South Korea and Canada are looking to enter the market. In April, Hanwha Ocean attempted to purchase Austal USA by bidding for parent firm Austal Ltd. The bid was turned down, but Hanwha successfully acquired Jones Act shipbuilder Philly Shipyard in June. In addition, Canada's Davie Shipbuilding recently committed to investing in a U.S. yard for icebreaker production, pending identification of the right partner.
WSC Presents Fund Plan to Support Green Fuels Ahead of IMO’s MEPC Session
WSC proposes a fund to support demand and drive production of green fuels (file photo)
The World Shipping Council, which represents the container and vehicle transport sectors, has refined its proposals to the International Maritime Organization for a financial mechanism that it believes will create price equality and drive the adoption of green fuels. The group joins others that are lining up with their competing proposals ahead of the next MEPC session, 82 which is scheduled to run from September 30 to October 4.
Experts expect a contentious session as the IMO looks to review the draft framework for decarbonization efforts and supporting research. The last session in March set the groundwork for the agenda which promises to confront key issues on the path to decarbonization as well as other key issues including new Emission Control Areas.
Industry groups and members are also targeting key elements of the decarbonization effort. For example, calls are increasing for revisions to address the shortcomings in the Carbon Intensity Index (CII).
"IMO member states have a unique opportunity to decarbonize the world’s ocean supply chains. We do not have time for half measures,” said Joe Kramek, the recently appointed President & CEO of the WSC. “The IMO's regulations must make it possible for green fuels to compete with fossil fuels, to drive the transition effectively. Anything less risks raising transportation costs without achieving the climate progress the world needs."
The WSC like many others highlights the concern that green fuels are far more expensive than traditional fossil fuels. They are also concerned about supply and production capacity. The working premise in much of the industry is that if the price of green fuels is addressed ensuring demand from operators will drive investments in production. The WSC points out that 60 percent of the newbuilds on order for the container and vehicle sector are designed to use green fuels further evidence that demand will emerge for these alternatives.
"For shipping’s energy transition to take place, green maritime fuels must be available at scale, requiring billion-dollar investments by energy producers. For these investments to occur, the IMO must adopt regulations that not only increase fossil fuel prices but also make green fuels a viable alternative,” asserts Kramek.
The WSC’s proposal to stimulate the necessary levels of investment in green fuel production calls for the creation of a fund which they call the Green Balance Mechanism. A regulatory measure, it would place a price on fossil fuel use. To bridge the gap between higher-priced green fuels and traditional fossil products, the WSC allocates funds from the older fuels to lower GHG-intensity fuels.
The proposed fee applies to fossil fuels and is calculated on an annual basis. It would be adjusted based on the amount of green fuel use and market prices as well as progress on reaching the initial goal of a 65 percent reduction in industry carbon emissions. Further, they propose to reward those offerings that create the greatest well-to-wake reductions with higher financial allocations.
The World Shipping Council has submitted updated designs for its proposals based on a positive response and input from IMO member states and other stakeholders. They provided a draft of the regulatory text and are working to build support for their proposed approach.
The Green Balance Mechanism proposal also includes a framework to create a parallel IMO Net-Zero Fund. The purpose would be to raise funds for research, development, and demonstration projects and climate mitigation initiatives.
Similar ideas for funds have been presented to the IMO during the past sessions. Observers believe it is likely that MEPC will adopt some form of the fund concept as a critical tool to support the development of green fuels. The industry widely accepts that steps will be required to level the divide between traditional and alternative fuels, although many of the proposals also call for greater government involvement to drive the transition.
OTG Recognizes Methanol’s Rising Popularity as Alternative Fuel of Choice
(Left to right): Knut H. Mikalsen & Johan Gustafsson
Ocean Technologies Group (OTG), the global leader in maritime Human Capital Management and operational technologies, has launched a pioneering new e-learning title: Methanol Fuel Safety.
As the world looks to reduce its dependency on fossil fuels in favour of cleaner energy, methanol has emerged as an increasingly popular option due to its low emissions, production versatility and cost-effectiveness when compared to other alternative fuels. Recent data indicates methanol has overtaken liquified natural gas (LNG) as the preferred alternative fuel for new ships in 2023.
According to the Methanol Institute, there are currently 251 methanol newbuild vessels on the water or in the order book. Well-established technologies also allow for easy conversion of existing marine internal combustion engines to run on methanol. Most methanol orders are for containerships, with a few for bulk and car carriers. Although LNG remains popular, particularly for new builds in container and car carrier segments, the total number of LNG orders fell from 222 in 2022 to 130 in 2023. These figures reflect the industry's broader move towards exploring various alternative fuels to achieve a greener future.
Recognising the importance of this trend and in response to customer desire to start preparing their seafarers for new fuels, OTG has developed a new e-learning title on Methanol Fuel Safety. The course curriculum aligns with ongoing work in industry groups to establish training standards for working safely with new fuels. This comprehensive programme provides seafarers with essential knowledge on safe handling and storage of methanol fuel and provides guidance on managing leaks and fires.
The title considers all applicable industry regulations and guidelines available such as “The International Code of Safety for Ships Using Gases or Other Low-flashpoint Fuels (IGF Code)” and the IMO’s interim guidelines for “The Safety of Ships Using Methyl/Ethyl Alcohol as Fuel.”
“It is really important for our customers to ensure that their seafarers stay ahead of the curve and have the knowledge, skills and defined competencies to handle new fuels safely before they are required to work with them,” said Knut Mikalsen, Director of Learning Solutions for OTG.
“At OTG, we’re committed to engaging with customers and key industry stakeholders to develop reliable training standards that can help mitigate potential risks and enable seafarers to work safely with these new fuels while maintaining the highest standards of operational excellence.
With a rapidly evolving space such as decarbonisation, e-learning offers a key advantage in that titles can be swiftly updated to ensure the latest information and best practices are always available wherever and whenever there is a need,” added Johan Gustafsson, Chief Revenue Officer at OTG.
The products and services herein described in this press release are not endorsed by The Maritime Executive.
ClassNK Issues World's First AiP for Bunkering Boom for Ammonia Fuel
ClassNK has issued an Approval in Principle (AiP) for a design concept of the ammonia fuel bunkering boom, which is jointly developed by Nippon Yusen Kabushiki Kaisha (NYK Line) and TB Global Technologies Ltd. This is the world’s first AiP certification for the design of a bunkering boom for ammonia fuel.
As ammonia fuel utilization is expected in shipping for decarbonization, bunkering vessels that supply fuel to ships and related equipment will play an essential role in the supply chain. On the other hand, due to the novelty, it can be difficult to confirm the safety of some equipment by applying existing rules.
Targeting such new technologies, ClassNK has issued the ‘Guidelines for Technology Qualification’ that define a certification process to demonstrate that an acceptable level of safety, equivalent to that of technologies designed under existing rules and standards, has been verified. Through the guidelines, ClassNK is providing a risk-based approach to safety assessment for the implementation of new technology.
ClassNK carried out a drawing review of a basic design of the bunkering boom based on part N of its ‘Rules and Guidance for the Survey and Construction of Steel Ships’ for ships carrying liquefied gases in bulk, and conducted a review of documents required by the ‘Guidelines for Technology Qualification’. Upon confirming they comply with the prescribed requirements, ClassNK issued the AiP.
ClassNK will continually strive to contribute to advanced decarbonization initiatives through safety assessments and more.
The products and services herein described in this press release are not endorsed by The Maritime Executive.
Terrified Crew Huddle Together as Call Goes Out to Sailors Society Chaplain
Too terrified to sleep in their cabins after coming under attack from Houthi rebels in the Red Sea, the crew of the oil tanker huddled together in corridors.
Their ship was just one of numerous vessels facing what is being described as the most sustained naval fight since World War II. In this case, the attack had started in the Gulf of Aden and continued into the Red Sea.
Panic-stricken and traumatised, one crew member reached out to Sailors' Society chaplain Ailton de Souza.
Ailton is part of the global team at the leading maritime welfare charity. The team is available 24/7, 365 days a year to seafarers and their families via instant message or phone call and support them through crisis cases. Currently, this can be anything from Red Sea attacks to imprisonment, piracy or accidents at sea.
In this case, luckily, despite the Houthi’s missiles causing damage to the ship, none of the crew were seriously injured or killed.
"Some of the missiles came from above and the last one came from an unmanned boat,” said Aliton.
"They were very scared because they received a message from the terrorists, who identified themselves as Houthis, over the radio, claiming responsibility for the attack.
"Due to emotional and psychological problems, the crew members could barely perform their duties on board - they were crying, did not eat well, slept together in the corridors out of fear, suffered panic attacks, woke up at any noise and had constant nightmares.
"In one of our conversations, the seaman said he was very grateful that I was always in touch with him, listening to what he had to say. At other times, after our chat, he said he would sleep better after finishing his shift."
Ailton, whose work is generously funded by UKP&I, continued to stay in touch with the seafarer, who wishes to remain anonymous, as he and a number of his crewmates left the ship, were treated in hospital and finally reunited with their families back home.
"We will continue to be there for him and the rest of the crew as they recover from their ordeal."
Sustainability Director and Head of Club Secretariat for Thomas Miller P&I Ltd, Patrick Ryan, said: “The UK P&I Club recognises that, despite all our efforts to prevent crisis from arising, seafarers continue to face very challenging situations. We are therefore delighted to be able to support the important work of the Sailor’s Society’s Crisis Response Network in supporting seafarers following such incidents.”
The products and services herein described in this press release are not endorsed by The Maritime Executive.
UK Royal Fleet Auxiliary Officers Set First Ever Strike Over Pay Dispute
RFA officers are set escalate their pay dispute with the first-ever full strike (RFA)
For the first time in the history of the Royal Navy Auxiliary, the officers of the critical support service to the UK’s Royal Navy plan to stage a one-day strike action. This comes as part of a long-running pay dispute between two unions, Nautilus and RMT (National Union of Rail, Maritime and Transport Workers) that represent the officers, crew and staff of the RFA, and the UK government and after a series of smaller actions.
Nautilus International, the union representing officers at the Royal Fleet Auxiliary (RFA) announced a one-day strike set for two weeks from now on Thursday, August 15. The union represents the officers and looks to increase pressure on the new government after it began a series of work slowdowns at the RFA in June.
At issue is a 4.5 percent wage increase which both unions state was “imposed” on their members in November 2023. Nautilus asserts the officers have experienced in effect a 30 percent reduction in real pay since 2010 when factoring in inflation and the cost of living. They are continuing to call for a “pay offer that reflects the high rate of inflation and a pathway to pay restoration.”
Union workers across the UK staged similar job actions over the past year as they fought for wage increases reflecting the rate of inflation. The efforts spread from the railways and postal and delivery services to dockworkers in major ports.
Nautilus reports members at the RFA voted overwhelmingly for industrial action. The union says 85 percent voted for action short of strike while 79 percent voted for strike action. The job slowdowns, refusing things like overtime and added assignments, were the first phase, i.e. short of a strike.
“Strike action is always a last resort for us, but there is a palpable strength of feeling among our members at the RFA,” said Nautilus International Director of Organizing Martyn Gray announcing the plans for the one-day action. “Our members are overworked, underpaid and undervalued,” he asserts citing 14 years of cuts restraints in the pay packages provided by the government.
The union delayed actions hopeful the new government of Prime Minister Keir Stamer would be receptive to its demands.
“Despite early engagement with the Ministry of Defence post the general election, we are yet to receive a new and improved pay offer for our members. This is unacceptable and leaves us no option but to escalate from action short of strike to full strike action,” Nautilus said in its notice.
RMT had begun its strike votes among RFA members in October 2023. RMT also conducted a full strike for one day on a Sunday in May involving all the ships in port, including Birkenhead, Portland, Plymouth, and Falmouth. They timed the strike to cause minimal disruption but to demonstrate dissatisfaction over the lack of revised offers from the government.
RFA members are civilian employees who operate the supply and logistics ships for the Royal Navy. Formed in 1905, the fleet consists of 13 vessels including tankers and supply ships. There are approximately 1,750 individuals classed as civil servants in the RFA according to the RMT. They work four-month tours at sea.
Lack of new Farm Bill said to endanger U.S. food security
GOP DO NOTHING CONGRESS
By Mike Heuer
Aug. 1, 2024 Banks are where farmers and ranchers usually go first to get loans to cover short-term operating costs and buy new equipment, but it's getting harder for them to secure loans and pay them off.
Aug. 1 (UPI) -- Farmers say the nation's food security is jeopardized, as they face potential catastrophe if federal lawmakers don't enact a replacement for the increasingly obsolete 2018 Farm Bill.
"Unless conditions change, we're facing a perfect storm, although I don't think it will be fully understood until early next year when farmers are unable to secure loans," Dana Allen-Tully, president of the Minnesota Corn Growers, told the House Agriculture Committee late last month.
She said "plummeting crop prices, high cost of production, doubling interest rates, natural disasters and tightening credit are some of the key culprits" making it very difficult for the nation's farmers and ranchers to continue producing food without the help of a new Farm Bill.
A shortfall in farm production could prove catastrophic for the nation's consumers and the global trading partners who depend on U.S. agriculture to feed their respective populations, Allen-Tulley said. Congress is tasked with enacting a new Farm Bill every five years to help protect the nation's farmlands and farmers, while ensuring food production continues.
The 2018 Farm Bill initially expired in 2023, but lawmakers so far have delayed replacing it with an update measure that addresses the agricultural industry's current needs. Allen-Tulley cited the U.S. Department of Agriculture recently reporting farm and ranch income will fall sharply by about $43 billion in 2024 as costs greatly outpace revenues. Projected losses
She said all farmers and ranchers are facing projected losses of at least $150 per acre, including her family farm in Minnesota.
The break-even point for corn farmers like her family is to produce 219 bushels per acre, which is 27% higher than the 10-year average, and 56 bushels per acre for soybeans, which is 12% higher than the10-year average.
"This is true across all commodities," Allen-Tulley said. "Farm and ranch families need help" because "prices don't cover our costs."
Production costs for farmers are well above market prices for the foods they produce, farmer and chairman of the American Cotton Producers David Dunlow told the House Agricultural Committee.
"We're hanging on by a thread," Dunlow told the committee.
"I have never experienced a worse time in my 40 years of growing," Dunlow said. "The stress has taken a toll on my health as I wonder how our operation will survive."
Dunlow farms on 3,800 acres in North Carolina, with most of the farming occurring on land leased from others.
He said his farming operation grows cotton, peanuts, soybeans, corn and wheat "mostly on rented land."
Without an updated Farm Bill that provides farmers with a viable price for agricultural commodities and suitable crop insurance that provides a safety net against crop damage from storms, pests and other dangers, Dunlow said the nation's farmers are imperiled. Current costs no longer current
The current reference prices for agricultural commodities, like cotton, corn and soybeans, were established six years ago in the 2018 Farm Bill and no longer reflect current costs.
The reference price has not kept up with inflation and other rising costs, which means farmers no longer have a safety net to offset losses by accessing federal Agriculture Risk Coverage and Price Loss Coverage programs.
"The results have been back-to-back years of losses on our farm," Dunlow said. "Next year could be just as bleak."
Those programs enable farmers to obtain payments for crop production the ensure they receive at least the federal reference price for respective commodities, such as a bushel of corn or a pound of cotton.
Federal lawmakers in the House and Senate didn't replace the 2018 Farm Bill with a new measure, as required every five years. Instead, they extended the 2018 Farm Bill for another year and are considering extending it again because of differences in House and Senate versions of a replacement Farm Bill.
"Another straight extension of the current law is unacceptable," Dunlow said. "I may no longer be able to farm. Many others are in the same situation." Allen-Tulley agreed.
"A Farm Bill extension will not stop the hemorrhaging and even a new Farm Bill with a strong safety net may not be timely or sufficient," she said. "I pray Congress will pass a Farm Bill this year because it will help in the long run."
The nation's farmers and ranchers need "real relief before the end of this year," Dunlow added. "We can't wait any longer."
Farmers and ranchers say they can't afford very costly new equipment, largely because the cost of feed, seed and planting corps outweighs the market price of the goods produced.
Higher costs
They cite energy costs, inflation, higher interest rates and other factors that have made it virtually impossible for them to bring new equipment online that might help scale up production.
Dunlow said the cost of a new cotton picker in 1990 was $40,000 and cotton sold for 74 cents a pound. Today, a new cotton picker costs $1.1 million, but cotton still sells for about the same price it did nearly 35 years ago. In fact, it was quoted at 69 cents a pound on Thursday.
Banks are where farmers and ranchers usually go first to get loans to cover short-term operating costs and buy new equipment, but it's getting harder for them to secure loans and pay them off.
"Agricultural bankers feel like they're looking over the cliff in regard to the agricultural economy," Tony Hotchkiss, chairman of the American Bankers Association's Agriculture and Rural Bankers Committee, told the House Agriculture Committee.
He cited almond growers in California refinancing their debt and finding that low commodity prices make it challenging for them to pay off the new debt obtained to pay off the old debt.
"We hope this is an outlier and not a growing trend," Hotchkiss said.
The USDA is projecting farm income to drop by 25% from 2023 to 2024, he added, which means the trend of refinancing debt might become more common among farmers and ranchers and more challenging to pay off their debts.
"Some regions will feel the effects sooner than others, but they all will feel it," Hotchkiss said.
He suggested several changes to government policy could be included in a new Farm Bill.
Increasing reference prices for agricultural products, making crop insurance more affordable, and creating a national process to streamline federal guaranteed loan programs for farmers and ranchers could provide the type of safety net needed to protect that nation's agriculture producers, Hotchkiss said.
Members of the House Agriculture Committee have reported out a 2024 farm Bill, but the Senate has not produced its version of bill, as required by the legislative process for the measure.
Once both chambers have reported out their respective measures, a conference committee will hammer out any differences to produce a final bill that each chamber can approve and send to President Joe Biden to sign into law.
That might not happen this year, though, which farmers and ranchers say could be catastrophic for their respective farming operations and bad for the nation's food supply.
